Five has quit Project Canvas – the BBC venture that will allow allow users to watch catch-up TV services such as the BBC iPlayer as well as standard TV services over an internet-connected set-top box.

The channel, which would have been required to stump up £16m in funding for the project, said it didn't view the scheme as a priority. Five was recently put up for sale by its owners RTL.

It is thought the BBC along with ITV, Channel 4, TalkTalk and BT, which remain committed to the project, will split Five's share of the funding between them.

"Despite withdrawing our interest in the venture we believe it will be a critical part of our strategy for reaching consumers in the future," said Charles Constable, director of strategy at Five.

Project Canvas' director Richard Halton: "They share our goal of bringing the benefits of internet-connected TV to all. We look forward to working with them as a content provider to the platform in the future".

See also: Project Canvas won't come to mobile phones